Sri Lanka Detains Second Batch of Chinese BYD Electric Vehicles

Colombo, Sep 1 (PTI): Sri Lanka Customs has detained a second batch of Chinese BYD electric vehicles (EVs) due to alleged misrepresentation of their motor power in customs tariff classifications.

Speaking to the media on Monday, Customs spokesman Seevali Arukgoda stated that this second batch, estimated at around 1,000 cars, has been held for necessary testing to determine if the engine power had been misrepresented.

In July, a similar consignment of 1,000 EVs from Chinese manufacturer BYD was detained by Sri Lanka Customs over suspicions of undervaluation of motor power to lower excise duty, officials informed the parliamentary oversight committee.

A settlement was reached in August to release over 900 units, pending tests to confirm the motor power, following judicial intervention.

As part of the court settlement, Customs agreed to the car importer’s proposal to provide a bank guarantee for a tariff discrepancy of 3 billion Sri Lankan rupees to release the cars pending investigations.

This settlement came after the importer, John Keells CG Auto, petitioned the court for redress as Customs continued to hold 991 cars.

The importer was accused of declaring a lower motor capacity—stating 100 kW instead of the actual 150 kW—to be charged a lower customs tariff.

However, Arukgoda noted that the technical experts' committee promised in the court settlement is yet to be appointed for the latest seizure.

The customs tariff for a 100 kW motor is four million rupees lower than that for a 150 kW motor.

BYD experienced brisk sales after Sri Lanka permitted car imports in February this year for the first time in five years. By May, within three months, they captured almost 90 percent of the electric car market and over 10 percent of all car sales.

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